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Bitcoin ETFs See $331M Inflows as BTC Recovers Above $70K

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Bitcoin ETFs data: SoSo Value

Bitcoin ETFs recorded $330.67 million in net inflows on February 6, ending a three-day outflow streak that drained $1.25 billion from products.

Summary

  • Bitcoin ETFs recorded $330.7M in inflows on Feb. 6, ending a $1.25B outflow streak.
  • BlackRock’s IBIT led with $231.6M as BTC rallied 6.6% above $70,000.
  • Ethereum ETFs diverged with $21.4M in outflows, led by BlackRock’s ETHA.

BlackRock’s IBIT led with $231.62 million in inflows. At the same time, Ark & 21Shares’ ARKB has brought in $43.25 million and Bitwise’s BITB posted $28.70 million in inflows.

The reversal came as Bitcoin (BTC) price climbed 6.6% over 24 hours and quickly fell to the $67,000 level.

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Total net assets under management rose to approximately $105 billion from $80.76 billion on February 5, while cumulative total net inflow reached $54.65 billion. VanEck’s HODL and Fidelity’s FBTC showed no updated data for the trading session.

February 2-5 posted $1.25B in Bitcoin ETFs redemption

The three-day selling wave began February 3 with $272.02 million in outflows, followed by the streak’s largest single-day withdrawal of $544.94 million on February 4.

February 5 recorded $434.15 million in Bitcoin ETFs redemptions before buying pressure resumed.

February 2 briefly interrupted the selling with $561.89 million in inflows, but failed to establish sustained surge.

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Bitcoin ETFs data: SoSo Value
Bitcoin ETFs data: SoSo Value

Total net assets fell from $100.38 billion on February 2 to a low of $80.76 billion on February 5 before recovering with February 6’s inflows.

Grayscale’s mini BTC trust attracted $20.13 million while the primary GBTC product recorded zero flows. Invesco’s BTCO posted $6.97 million in inflows. Valkyrie’s BRRR, Franklin’s EZBC, WisdomTree’s BTCW, and Hashdex’s DEFI all recorded zero activity.

BlackRock’s IBIT maintains $61.84 billion in cumulative net inflows. Grayscale’s GBTC holds -$25.88 billion in net outflows since converting from a trust structure.

Fidelity’s FBTC has accumulated approximately $11.08 billion in cumulative inflows based on available data.

Ethereum posts $21 million in outflows as BlackRock withdraws

Ethereum spot ETFs recorded $21.37 million in net outflows on February 6 despite Bitcoin’s reversal to positive flows.

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BlackRock’s ETHA accounted for $45.44 million in redemptions, offsetting positive flows from four other products.

Bitwise’s ETHW led Ethereum inflows with $11.80 million, followed by Grayscale’s mini ETH trust at $6.80 million, VanEck’s ETHV at $3.01 million, and Invesco’s QETH at $2.45 million. Grayscale’s ETHE, Franklin’s EZET, and 21Shares’ TETH recorded zero flows.

Total net assets for Ethereum products fell to $10.90 billion from $13.69 billion on February 2. Cumulative total net inflow dropped to $11.80 billion.

Ethereum has posted outflows in three of the past four trading days, with February 4 and 5 recording $79.48 million and $80.79 million in withdrawals respectively.

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February 3 provided brief relief with $14.06 million in inflows before redemptions resumed.

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Crypto World

Bitcoin Mining Difficulty Drops by 11% Amid Steep Market Downturn

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Mining, China, Bitcoin Mining, United States, Mining Pools

The Bitcoin network mining difficulty, a metric tracking the relative challenge of adding new blocks to the Bitcoin (BTC) ledger, fell by about 11.16% in the last 24 hours, the worst drop in a single adjustment period since China’s 2021 ban on crypto mining.

Bitcoin mining difficulty is at 125.86 T and took effect at block 935,429, data from CoinWarz shows. The average block time is over 11 minutes, overshooting the 10-minute target.

Difficulty is projected to fall again in the next adjustment on February 23 by about 10.4% to 112.7 T, according to CoinWarz.

Mining, China, Bitcoin Mining, United States, Mining Pools
The Bitcoin network mining difficulty from 2014 to 2026. Source: CoinWarz

China announced a ban on crypto mining and began enforcing a crackdown on digital assets in May 2021, resulting in several downward difficulty adjustments between May and July 2021, ranging from 12.6% to 27.9%, according to historic data from CoinWarz. 

The steep downward adjustment came amid a broad crypto market downturn, which crashed the price of Bitcoin by over 50% from the all-time high of over $125,000 to a low of $60,000, and a winter storm in the US that caused temporary miner downtime. 

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Related: Bitcoin’s ‘miner exodus’ could push BTC price below $60K

Winter Storm Fern sweeps through the US and curtails miner hashrate

A severe winter storm swept through the United States in January, impacting 34 states across 2,000 square miles with snow, ice and freezing temperatures that disrupted electrical infrastructure.

Mining, China, Bitcoin Mining, United States, Mining Pools
Large areas of the United States experienced power outages and service disruptions during winter storm Fern. Source: AccuWeather

The disruption to the power grid caused US-based Bitcoin miners to temporarily curtail their energy usage and halt operations, reducing the total network hashrate, the amount of computational power expended by miners to secure the Bitcoin protocol.

Foundry USA, a US-based mining pool and the biggest mining pool by hashrate in the world, briefly lost about 60% of its hashing power amid winter storm Fern.

The mining pool’s total hashing power declined from nearly 400 exahashes per second (EH/s) to about 198 EH/s in response to the storm. 

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Mining, China, Bitcoin Mining, United States, Mining Pools
The market share of Bitcoin mining pools. Source: Hashrate Index

Foundry USA’s hashrate recovered to over 354 EH/s, the mining pool’s hashing power at the time of this writing, and it still commands 29.47% of the market share, according to Hashrate Index.

However, the total Bitcoin network hashrate declined to a four-month low in January amid deteriorating crypto market conditions and miners shifting operations to AI data centers and other forms of high-performance computing.

Magazine: Bitcoin mining industry ‘going to be dead in 2 years’: Bit Digital CEO